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From reviewing the article it is extracted that GDP is mainly depend on investment, human capital and on interest rate. The data which we use is secondary data and we tend to find out how the GDP of developing countries is affected by investments[5], human capital and education. We use the data of these variables on several previous years to identify or predict the trend of the GDP of the existing year. Hence from review of literature we find that in research design we use the methodology of panel or pool regression because the data is panel in nature. Panel data means the data is based on more than one year (number of periods) and observing more than one country (cross sectional unit).
Data Collection
There are basically two types of data primary data and secondary data. The primary data are used mostly for qualitative methods and secondary data are used mostly for quantitative data. Primary data are the data which is firsthand experience like data collected from surveys by researcher as far as secondary data which is often found in forms of a published data. Our study is quantitative study and based on secondary data because we use published data from authentic source such as government publications.
The procedure of data collection is divided in several parts. Firstly researcher does planning and finalizes the general topic in which researcher has command and deep knowledge, then the researcher finds all the relevant article for that topic and also collect different literature from websites, books, manuals and other resources. After reviewing all these material a concept is developed in the mind of researcher that what variable researcher will use and which cross sectional countries the researcher will select and run the tests on and of course for how many years does he intend to run tests on. i.e. for instance In order to find out the GDP of UK for 2016, the researcher may run tests on from a period of 2010 to 2015 to predict the GDP trends and forecast the outlook of GDP in UK.
In the relevant study we find from many resources that investments, human capital and interest rate are the key factors which effect GDP of developing countries. The data we will use for developing countries and for the year 2000 to 2014. The data is available on world development bank. We can extract data from world development indicators. All of the data is available on WDI quite easily. The articles which researcher has studied are used for referencing purposes and given in detail in bibliography section of the Research Project.
Strengths and Weaknesses
Documentary research, is characterized by the use of documents; collects, selects, analyzes and presents consistent results; because it uses the logical and mental processes of any investigation; analysis, synthesis, deduction, induction, etc., because it performs a process of scientific abstraction, generalization based on the fundamentals; because it is an appropriate data collection that allow rediscover facts suggest problems, orient to other research sources, direct ways to develop research tools and develop scenarios[6].
